President Donald Trump's meeting with Chinese Vice Premier Liu He is already bearing fruit, with the president saying he is prepared to extend the March 1 deadline for a trade deal between the world's two largest economies. 

Trump said that the talks are going well, but bigger decisions will need to be worked out between himself and Chinese President Xi Jinping. 

Interpretations of the state of negotiations seem cautiously optimistic coming out of the White House with U.S. Trade Representative Robert Lighthizer saying that there are still a few "very big" hurdles remaining in negotiations, according to the Wall Street Journal. 

Commerce Secretary Wilbur Ross meanwhile is quoted by the Journal as saying "It's a little early for champagne."

But Trump insisted Friday that the relationship between the two countries is the strongest it's ever been and that the talks are going well.

If the two sides can not make a deal, the tariffs on $200 billion in Chinese imports could be raised to 25%. 

The Journal recently reported that while Chinese negotiators have offered to stop providing government subsidies that distort prices and put Western rivals at a disadvantage, they have not produced a list of specific subsidies they would be willing to target. 

Markets matched Trump's cautious optimism, getting a slight boost as the Dow Jones Industrial Average closed up 0.7%, or 181 points, at 26,031.81 on Friday.